RBI relaxes gold deposit scheme rules
MUMBAI (Reuters) - The Reserve Bank of India (RBI) has relaxed rules on gold deposit scheme offered by banks by allowing the lenders to offer the product with lesser maturity.
The RBI said in a release on Thursday that banks can offer gold deposits maturing in 6 months to 7 years period compared with 3 years to 7 years earlier. The central bank also said the banks do not need to obtain its approval for floating such schemes.
The RBI plans to mobilise the unused gold by lending it to importers and exporters of the yellow metal, in a move it hopes will bring down the demand for physical gold. It wants banks to encourage products linked to accepting physical gold as deposits and investing public money in gold related products.
(Reporting by Suvashree Dey Choudhury and Siddesh Mayenkar; Editing by Anand Basu)
- Tweet this
- Share this
- Digg this
A pick-up in retail inflation to its fastest pace on record will likely force Reserve Bank of India chief Raghuram Rajan to raise interest rates for a third time on Wednesday, crimping growth prospects for an already fragile economy. Full Article
Asia-Pacific M&A volume falls for third consecutive year, deal size grows. Full Article